South Korean apparel manufacturer Hansae is rethinking its global strategy-and its geographic center. In an interview with Singapore-based business outlet The Worldfolio on July 25, Vice Chairman Ikhwan Kim said, “There’s no particular reason Hansae’s global headquarters must remain in South Korea.” He emphasized plans to maximize operational efficiency by leveraging regional advantages in Spain, the U.S., Vietnam, and Guatemala.
Kim, the second son of Hansae Yes24 Holdings Chairman Dongnyeong Kim, currently oversees both Hansae Co., Ltd.-a leading apparel OEM/ODM firm-and Hansae Mobility, the group’s vehicle division. He is steering the company away from its heavy U.S. dependence and toward Europe as a key pillar for future growth.
Hansae has long relied on major U.S. brands such as GAP and DKNY, with 18 of its 33 global buyers based in the U.S. and up to 90% of its revenue coming from the American market. But the resurgence of tariff risks since Donald Trump’s rise to power has prompted the company to diversify its client base and reduce its exposure to U.S.-centric uncertainties.
Europe, by contrast, presents both stability and clear growth potential. In 2023, the European apparel import market reached $127 billion, surpassing the U.S. market at $107.7 billion. Favorable trade conditions-including the EU-Vietnam Free Trade Agreement and progress on an EU-Indonesia deal-further strengthen Hansae’s position, as key production facilities in Southeast Asia benefit from reduced tariffs and improved price competitiveness.
On the production side, Hansae maintains a robust and diversified supply network. The company operates 11 factories with 162 production lines in Vietnam alone, producing over 74 million garments in 2023. Additional facilities in Indonesia, Nicaragua, and Guatemala further support its European expansion strategy.
Kim said the company is now moving beyond traditional OEM and ODM services, focusing instead on higher-value segments such as 3D design, R&D-driven activewear, swimwear, and outdoor gear. This marks a broader shift toward tech-enhanced, value-added manufacturing.
Hansae is also eyeing the Japanese market. Kim revealed plans to launch a dedicated design office in Japan to meet rising demand for customized styling, part of a broader effort to tailor offerings to each regional market.
With its multi-pronged approach-regional diversification, product premiumization, and strong manufacturing competitiveness-Hansae is positioning itself for long-term growth centered in Europe. Amid ongoing U.S.-China trade tensions and a wave of global protectionism, the company sees this strategy as a way to reduce supply chain risk while strengthening ties with international retail partners.
